A polluter will ________ its emissions and sell its excess permits on the market if the market price is ________ or equal to its MAC at its chosen emission level.
A)reduce;less than
B)reduce;greater than
C)increase;less than
D)increase;greater than

Question

Quizplus · Accepted Answer

A polluter will reduce its emissions and sell its excess permits on the market if the market price is greater than or equal to its Marginal Abatement Cost (MAC) at its chosen emission level, as this makes selling permits more profitable than using them.

A Polluter Will ________ Its Emissions and Sell Its Excess